The correct option is this: TOTAL ASSET DECREASES WHEN THE LENDING TRANSACTION OCCUR BUT INCREASE WHEN THE AMOUNT BORROWED BY THE CUSTOMER IS REPAID.
When a loan is given out, the asset account will be debited while the cash account is credited. This means that, at the point of giving the loan, the value of one's asset has decrease. Asset value will increase when the loan is paid.
Answer:
True
Explanation:
Decentralised purchasing also means the purchase of each manufacturing center necessity in the organisation. This method, instead of dropping buying power with a single branch,it would be given to regional offices or branches. They have the power to buy the items needed as per their demands. Acquiring in large quantities lowers the cost to the company.
Answer: The correct answer is <u>".B. There is no beginning inventory.".</u>
Explanation:
The weighted average method produces the same cost of manufactured goods as the FIFO method (First in First out) when there is no beginning inventory because there are no units at the beginning that drag the cost.
Answer:
- 1. Paid $38 for an oil change.
$38 Maintenance Expenses - DEBIT
$38 Cash - CREDIT
- 2. Paid $564 to install special shelving units, which increase the operating efficiency of the truck.
$564 Delivery Trucks - DEBIT
$564 Cash - CREDIT
Explanation:
1. Paid $38 for an oil change
$38 Maintenance Expenses - DEBIT
$38 Cash - CREDIT
An oil change it's just an expenses of maintenance, which goes as General Expenses directly to the Income Statement.
2. Paid $564 to install special shelving units, which increase the operating efficiency of the truck.
$564 Delivery Trucks - DEBIT
$564 Cash - CREDIT
The installations of shelving units it's an improvements in the company's fixed assets, therefore, assets improvements are activated as fixed assets in the non-current assets section of the balance sheets.
Answer:
Predatory pricing.
Explanation:
When Lofonift Inc. introduced its flagship product, an MP3 player, it captured the MP3 player market by offering its product at the lowest price in the market. This gradually forced many of its competitors out of business. Once its competitors were out of business, Lofonift Inc. raised its prices. In this scenario, Lofonift Inc. most likely indulged in predatory pricing.
Predatory pricing is a strategy used by some business owners to reduce the cost of a particular commodity or item to the lowest possible amount such that the available competitors will be driven out of business.